The administration of U.S. President Donald Trump is expected to announce new policies aimed at boosting coal production in America.
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The U.S. Interior Department could unveil a new plan to increase coal output as soon as Sept. 29, say media reports. The Trump administration is reportedly looking to reverse decades of decline in coal’s use and restore jobs to coal mining communities across the U.S.
Efforts to raise coal production are viewed as positive for mining companies that have sizable interests in the fuel source, including Teck Resources (TECK), BHP Group (BHP), and SunCoke Energy (SXC). The latest plan comes after President Trump in April signed several executive orders aimed at lifting coal output.
Reversing Course
The Trump administration’s efforts to revive coal run counter to global efforts to cut carbon dioxide emissions that contribute to global warming. Even in the U.S., substantial efforts have been made to lower the reliance on coal. Coal-burning plants generated about 15% of U.S. electricity in 2024, down from 50% in 2000, according to the Energy Information Administration (EIA).
Over the past 25 years, America has turned to cleaner natural gas to replace the country’s reliance on coal. Renewable energy sources such as solar and wind power have also helped to replace the use of coal. Consequently, the number of coal workers in the U.S. has sunk to about 40,000 from 70,000 a decade ago. However, President Trump has promised to reverse course and dramatically boost coal production.
Is TECK Stock a Buy?
The stock of Teck Resources has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 11 Buy and six Hold recommendations issued in the last three months. The average TECK price target of $45.39 implies 6.27% upside from current levels.
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